Malaysia 1MDB corruption case reached a major turning point on Friday, when the High Court ruled that former Prime Minister Najib Razak, who is currently serving time in prison, had misused his authority in connection with the state investment fund. The judge confirmed the conviction, though the complete judgment and sentencing details are still being read and finalized in court. The decision represents the largest abuse-of-authority case so far in the long-running 1MDB legal proceedings.
Investigations by authorities in Malaysia and the United States allege that at least $4.5 billion was diverted from 1Malaysia Development Berhad, a sovereign fund Najib helped establish in 2009. Najib has repeatedly rejected the accusations, saying he was misled about the origin of the money and denying any involvement in corruption or financial manipulation. Prosecutors argue that more than 2.3 billion ringgit (around $569 million) was transferred from 1MDB to accounts connected to Najib.
During the verdict reading, Judge Collin Lawrence Sequerah stressed that the defense’s claim that the case was politically engineered did not hold up under scrutiny. He pointed to evidence showing Najib had acted beyond his mandate, using intermediaries to influence decisions around the fund. The judge stated that the narrative suggesting the money came from donations linked to Middle Eastern royalty was not supported by independent verification. According to the court, documents submitted to validate the donation narrative were inconsistent with investigative findings and appeared to lack authentic confirmation.
The judge also referenced evidence indicating a working relationship between Najib and fugitive financier Jho Low, who has been charged separately in the United States for his role in the scandal. Jho Low has publicly denied all allegations, and his current location is not officially known. Najib previously stated that the funds deposited into his personal accounts were charitable contributions from Saudi royalty, but the court dismissed the claim due to insufficient proof and contradictory findings from investigators. The judge also said that letters used to support the donation narrative were not backed by independent sources and may have been fabricated.
If Najib’s appeals are not successful, penalties for his current charges could include long prison terms and fines that are several times the value of the alleged financial misuse. Legal experts observing the case note that maximum sentences for abuse-of-authority charges in Malaysia can reach 15 to 20 years per count, depending on the final sentencing decision. Najib has already been in prison since 2022 for a separate 1MDB-linked corruption case, where his original 12-year sentence was reduced by half following a pardons board review.
Political Impact Grows as Legal Process Continues
The conviction comes at a sensitive time for Malaysia’s political climate. Just days earlier, another court rejected Najib’s request to serve the remainder of his sentence under house supervision, intensifying political debate. The decision triggered reactions within the ruling coalition led by Prime Minister Anwar Ibrahim, whose administration includes Najib’s former political party, UMNO (United Malays National Organisation), as part of the current governing alliance.
UMNO had previously run campaigns opposing Anwar in the 2022 elections, but later joined his coalition to form a government after the election resulted in a hung parliament. Some UMNO leaders voiced frustration after Najib’s house-arrest request was denied, arguing that the process has strained party morale. Tensions also flared when certain members of the coalition publicly reacted to the ruling on social media, including celebratory posts that sparked criticism from opposition supporters.
To reduce political friction, Anwar called for restraint and public composure earlier this week. He urged all political blocs to respect the court’s process and avoid inflaming public sentiment. In a statement on Tuesday, Anwar asked all sides to respond to the ruling with “patience and clear judgment,” emphasizing unity and institutional respect.
Legal analysts believe that even after sentencing is announced, the appeals process could take months, given the scale of evidence and financial complexity involved. Many also highlight that 1MDB’s institutional reform remains a long-term challenge for Malaysia, beyond Najib’s individual verdict. The outcome of this case is expected to influence public trust in Malaysia’s governance systems and judicial independence.